Chinese businesses and U.S. company indicted over pet food

KANSAS CITY, Missouri (Reuters) - Two Chinese businesses and their top executives and a U.S. company and its owners were indicted by a federal grand jury in Kansas City on Wednesday for their alleged roles in manufacturing and importing a tainted ingredient used to make pet food, believed to have sickened and killed pets across the country.

The indictments, handed down by a federal grand jury in Kansas City, alleged the defendants were involved in bringing more than 800 metric tons of wheat gluten tainted with dangerous melamine into the United States between November 6, 2006 and February 21, 2007 for use in pet food.

The gluten was sold to pet food manufacturers and ultimately caused dogs and cats throughout the United States to suffer serious illness and death, U.S. Attorney John Wood said.

Pet food manufacturers recalled more than 150 brands of dog and cat food across the nation in 2007, following reports of thousands of cats and dogs suffering kidney failure or other illness after eating tainted products. Canadian manufacturer Menu Foods Income Fund was hardest hit, recalling 60 million packages of pet food.

"In today's global economy, crimes that occur halfway around the world can seriously impact our lives," said U.S. Attorney John Wood.

A 26-count indictment named Xuzhou Anying Biologic Technology Development Co Ltd (XAC), a Chinese processor of plant proteins that exports products to the United States; Mao Linzhun, a Chinese national who owned and managed XAC; Suzhou Textiles, Silk, Light Industrial Products, Arts and Crafts I/E Co Ltd (SSC), a Chinese export broker that was used by XAC to export products to the United States; and Chen Zhen Hao, 58, a Chinese national who was the president of SSC. All were charged in a 26-count indictment returned by a federal grand jury in Kansas City.

A separate 27-count indictment named Las Vegas-based Chemnutra Inc, which buys food and food components from China and imports those items into the United States to resell to food companies, and Chemnutra owners Sally Qing Miller, 41, a Chinese national, and her husband Stephen Miller, 55.

"Although Mr. and Mrs. Miller strongly deny any intent to defraud or knowledge of wrongdoing, the government does not allege that Mr. and Mrs. Miller knew of the presence of melamine or any other substance that would cause death or injury to animals," the company responded in a statement.

"The Millers unequivocally support the government pursuing those with knowledge of the dangerous contaminants; however, they are deeply bothered by the government's failure to make these important distinctions in its press release related to their indictment," the statement said.

The other defendants could not be reached for comment.

Prosecutors said SSC agreed to provide ChemNutra with food-grade wheat gluten with a certain protein content. SSC then entered into a separate contract with XAC to supply the wheat gluten to fulfill that contract. The indictments allege that XAC added melamine to the wheat gluten to fraudulently indicate the wheat gluten had a higher protein level than it actually did.

Prosecutors said the Millers received the melamine-tainted product at a port of entry in Kansas City and then sold the product to their customers, who used it to manufacture various brands of pet food.

Wheat gluten is the natural protein derived from wheat or wheat flour, which is extracted and dried to yield a powder of high protein content. Pet food manufacturers use it as a binding agent in pet food. Melamine, which is used to create plastics, fertilizers and cleaning products, has no approved use as an ingredient in human or animal food in the United States.

The indictments allege SSC labeled the wheat gluten with an inaccurate product code so it would not be properly inspected by the Chinese government prior to leaving that country.

(Additional reporting by Ilaina Jonas in New York)

(Editing by Andre Grenon and Carol Bishopric)